Galp to take on operatorship of offshore Morocco area

Tangiers Petroleum offshoreGalp Energia has entered into a farm-out agreement with Tangiers Petroleum for a 50 per cent interest in the Tarfaya Offshore area

Portuguese company Galp will pay US$41mn to the ASX-listed Tangiers as per the agreement of the deal between the two companies, which comprises eight exploration permits on the Atlantic Margin, offshore Morocco.

Galp will also take over operator responsibilities of the eight permits from Tangiers, who will continue to hold a 25 per cent interest in the area, with Moroccan state-owned company Office National des Hydrocarbures et des Mines (ONHYM) maintaining its 25 per cent interest.

Tangiers executive chairman Eve Howell remarked, "We are excited about entering into a joint venture with a substantial company like Galp which already works in eight African countries and are looking forward to having their experience in operating the drilling of our first Moroccan well."

The Tarfaya Offshore area covers an area of 11,281 sq km and lies predominantly in water depths of less than 200 metres.

According to Galp's estimates, the Trident prospect – the area's primary target – is an oil prone prospect with an estimated gross prospective resources of 450 million barrels (mean unrisked estimate) with a 21 per cent probability of success.

The transaction will be subject to regulatory approvals from the Moroccan government.

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